Complaint Review: Citibank Now

residual finance charges are not interest charges on interest. it is interest on the balance of your account up until the day you paid it off in full. the balance on your statement is not a payoff amount.

for example, you receive a statement showing activity for january 1 through 30 with a due date of feb 20. this statement shows interest charges for the month of jan. you pay off the entire balance shown on the due date of feb 20. however, you still had a balance in your account from feb 1 through the 20th. you would then receive a statement for the month of feb, showing that you paid off the balance, and reflecting finance charges for the time that your account still had a balance during that month. payment of those finance charges would be the end of it.

it is done this way because the bank has no way of knowing if in fact you will be paying the account off, and they can't charge interest in advance. pretty much all credit cards do this. it's in all the cardholder agreements, although no one does a good job of explaining just what that means in the terms and conditions.

i am in no way defending citibank, i just noticed the residual interest charge problem in your last post and thought i'd explain just what that was. it is strange that they would raise your interest back to default for just the residual interest. it does seem that citi wanted to get as much money as possible from you after paying off the balance. it's also strange that you got an overpayment check back. did you request that check, or did they automatically send it? if you called to request it, then the rep you spoke to should have warned you about the final interest charges, it seems. perhaps you could speak to a supervisor again, get the interest rate lowered again for this last payment, or the charges even credited as a goodwill gesture.

sorry for the long post. good luck!

Apparently, I gave CitiGroup too much credit for turning around they're unethical behavior and to do the right thing. They yet again penalized me to the tune of $257 and again raised interest to 31.99% negating paying off the balance (damned if you do, damned if you don't).

To Heidi the check for re-imbursement of over payment sent 5/19 clearly states Citibank USA, NA. So, you need to gain knowledge of your organization.
Fact Re-cap:

1. 3/21 (my human error, interest raised to 31.49% plus late penalty fee).

2. 3/27 received notice that the card interest increased from 17% to 31.49% due to late payment to include late fees = $887 due date of 4/21.

2. 3/27 conversations with employees to remain nameless at this time as it would be unethical to post names and employee IDs articulated degrading comments such as lack of accountability and attack on intelligence were made with no hierarchical recourse available.

3. 4/18 Full disbursement to include outrages interest charges and required payment was made as well as a note to customer service via Citi website (as they state consumer feedback is valuable), no response.

4. 5/4 Heidi's outrageous response posted above in Citi's defense.

5. 5/11 all documentation was received by Citi as materials were sent registered mail.

6. 5/19 Printed "0" balance statements via online systems as I received a CITIBANK check for re-imbursement of over payment. Also a letter was sent to Sears National Customer Relations regarding they're agreement with Citi and the impact they have on Sears reputation.

7. 5/30 Statement received for an additional $257 with rate increasing once again to 31.99%.

Much to my dismay, I contacted Citibank and spoke to 4 representatives all of which were rude, degrading and unprofessional. What has this world come to when we accept and tolerate this behavior? They are single handedly killing my credit is so value.

Trust me when I say, this is not over as I feel these ethics are loan sharking and highway robbery by taking advantage of individuals who have fallen on hard times or made a basic human error. Why should I pay interest when the balance was paid in full weeks prior to the end of the billing cycle date? Residual interest? This means they are charging interest for interest, so if I take that at face value I will receive another bill for $70+ next month and so on.

Why have government legislation to monitor lending activities of creditors that was implemented to cease loan sharking activities? Oh, can you say "Good Government Funding" a fund raiser in Corporate America to pay for lobbyists to fight for institutional agendas. There should be a cap on variable interest practices.

Last, I fear for my college bound kids who may fall for 0% credit cards offers to help them through college only to hike rates after graduation to rob them of any pay left after paying student loans.

I know this is long, but I wanted to keep facts, facts and let all consumers and companies considering contracts with any Citi affiliate to be informed and aware (the devil is in the details, read between the lines, service level agreements, customer satisfaction, etc.) This is a capitalist country and until we ban together and take care of our own the rich keep getting richer and the poor, well basically have no hope!

Michelle,

Thank you for sharing and I am glad you had a better customer experience that myself. It is a shame that business ethics and customer service are of no importance to CitiGroup as stated in they're core values.


Dave,

This has never been a matter of minimum payment increase. In fact, I am glad minimum payment increase evolved. I want to pay all debts off asap due to the current economic state and it is easy to only make minimum payments.

The issues are: lack of professionalism, concern for consumer satisfaction, general human decency and ridiculous interest rates. All of which should be of concern to every consumer.

All,

As I stated in my original postings and being a person of integrity, I paid my card off in full via counter check. I also sent the destroyed card, copy of these rip-off reports, letters to legislative representatives as well as a personal note of dissatisfaction registered mail.

The question still remains, will I hear from them again as others reported after payment in full. Not to mention, I do not expect to ever receive propaganda or solicitation for business ever again. Should that be the case I will take action.

I take accountability for one late payment and debt incurred, but I do not expect outrageous interest rates/penalties after years of perfect credit ratings. I also do not expect to be treated as a second class citizen.

Let this be a lesson learned to us all as we do have a voice and a choice as to who we do business.

I going to go search for some of the anti-bank opinion articles that came out when they lowered minimum payments.

If lowering minimum payments was an evil plan back then, I don't see how raising them now can also be an evil plan.

Unless all banks are evil, be that as it may.

I going to go search for some of the anti-bank opinion articles that came out when they lowered minimum payments.

If lowering minimum payments was an evil plan back then, I don't see how raising them now can also be an evil plan.

Unless all banks are evil, be that as it may.

I going to go search for some of the anti-bank opinion articles that came out when they lowered minimum payments.

If lowering minimum payments was an evil plan back then, I don't see how raising them now can also be an evil plan.

Unless all banks are evil, be that as it may.

I going to go search for some of the anti-bank opinion articles that came out when they lowered minimum payments.

If lowering minimum payments was an evil plan back then, I don't see how raising them now can also be an evil plan.

Unless all banks are evil, be that as it may.

Forrest they tried to do this to me too. I have had a Citibank (Citicard) Credit Card for several years now and just last month they tried to do the same thing to me by increasing my interest a ridiculous amount after 1 error on my part. Here goes the story:

On the closing of my April 2006 statement, I was over my limit by $6.24 in charges (fully my error, I am aware) and I was charged a over limit feebut not only that they increased (tried too) my interested from a fixed rate of 8.99% to a variable of 31.74% resulting in around $200.00 in interest alone being posted to my balance. I called customer service to inquire on this and see what could be done.

I too was instantly received with rude service and snide remarks. I requested to speak to a supervisor due to the way I was being treated by the customer service reprehensive. When the supervisor took the line I began to explain I wanted to see what could be done to drop the interest back down being this is the first time in over three years (started account in 2/2003). The supervisor immediately took the interest rate back to my 8.99% and also removed the over limit fee (I did not ask for this, nor did I realize it was done until I looked at my statement) and while she had a bad attitude, I was satisfied as I got the outcome I desired. I received a credit of $35.00 for fee and $ 160.00 for interest within one day; I also made a payment of $250.00 to get the card well below the limit.

I am sorry to hear you did not have the same outcome and are still dealing with theses issues. I am appalled, although not surprised they would not give customers a little room for human error, such as one late payment in several years, etcbut the again they are in it for the money. I can't imagine how many people just accept it and pay and how much money they are making.

Although I have cut up the card and have zero intentions of using again, I have not closed the account. I am still deciding if I want to continue to use there services. Good Luck!

I am disappointed in the response Heidi provided to Monroe, not just because she seems to not understand how credit risk is accessed but also because she is an employee of a bank who doesn't understand. She seems to do a good job of parroting the company's policies and defensive responses to legitimate complaints about Citibank's interest rate rip off tactics. Interest rates should reflect credit risk levels. Missing a payment due date by one minute, one day or even two weeks does not mean the person is a greater credit risk. Yes, he missed the due date and should pay the late fee, but that is it. You suggest he should be subject to excessive interest rates as long as Citibank deems is appropriate as well as pay the late fee. Sounds quite greedy to me. Shouldn't the customer's credit rating be considered before the bank skyrockets the interest rate? Sounds like a fair policy to me. A bank not willing to due this is not interested in providing its customers a fair service for fair payment. It is interested in getting more money however it can and is willing to risk its professional reputation to do it. It is hard being fair but that is no excuse for not striving to be fair.

I am disappointed in the response Heidi provided to Monroe, not just because she seems to not understand how credit risk is accessed but also because she is an employee of a bank who doesn't understand. She seems to do a good job of parroting the company's policies and defensive responses to legitimate complaints about Citibank's interest rate rip off tactics. Interest rates should reflect credit risk levels. Missing a payment due date by one minute, one day or even two weeks does not mean the person is a greater credit risk. Yes, he missed the due date and should pay the late fee, but that is it. You suggest he should be subject to excessive interest rates as long as Citibank deems is appropriate as well as pay the late fee. Sounds quite greedy to me. Shouldn't the customer's credit rating be considered before the bank skyrockets the interest rate? Sounds like a fair policy to me. A bank not willing to due this is not interested in providing its customers a fair service for fair payment. It is interested in getting more money however it can and is willing to risk its professional reputation to do it. It is hard being fair but that is no excuse for not striving to be fair.

I am disappointed in the response Heidi provided to Monroe, not just because she seems to not understand how credit risk is accessed but also because she is an employee of a bank who doesn't understand. She seems to do a good job of parroting the company's policies and defensive responses to legitimate complaints about Citibank's interest rate rip off tactics. Interest rates should reflect credit risk levels. Missing a payment due date by one minute, one day or even two weeks does not mean the person is a greater credit risk. Yes, he missed the due date and should pay the late fee, but that is it. You suggest he should be subject to excessive interest rates as long as Citibank deems is appropriate as well as pay the late fee. Sounds quite greedy to me. Shouldn't the customer's credit rating be considered before the bank skyrockets the interest rate? Sounds like a fair policy to me. A bank not willing to due this is not interested in providing its customers a fair service for fair payment. It is interested in getting more money however it can and is willing to risk its professional reputation to do it. It is hard being fair but that is no excuse for not striving to be fair.

I am disappointed in the response Heidi provided to Monroe, not just because she seems to not understand how credit risk is accessed but also because she is an employee of a bank who doesn't understand. She seems to do a good job of parroting the company's policies and defensive responses to legitimate complaints about Citibank's interest rate rip off tactics. Interest rates should reflect credit risk levels. Missing a payment due date by one minute, one day or even two weeks does not mean the person is a greater credit risk. Yes, he missed the due date and should pay the late fee, but that is it. You suggest he should be subject to excessive interest rates as long as Citibank deems is appropriate as well as pay the late fee. Sounds quite greedy to me. Shouldn't the customer's credit rating be considered before the bank skyrockets the interest rate? Sounds like a fair policy to me. A bank not willing to due this is not interested in providing its customers a fair service for fair payment. It is interested in getting more money however it can and is willing to risk its professional reputation to do it. It is hard being fair but that is no excuse for not striving to be fair.

Duane you are correct, I was late once in years. Plus, I stated up front that I take full responsibility for missing 1 payment (human error). Did they call me, no! When I called them they were rude, obnoxious and of no assistance. Read other reports and you will see a common theme from CitiGroup employees.

Now, I have to question your motive behind your response as a consumer or are you an employee also? The reality is in this economic situation as stated in my original report, consumer awareness was my original intent. Almost triple the original rate should be of concern for you as well if you are a consumer. I conduct business with professional courtesy and I expect to be treated likewise.

The fact of slander is based on accusations made by Heidi regarding purchases I can't afford. Well, this is my point exactly regarding core values and my issues are in regards to basic human decency and the state of the economy as I have been blessed. I understand habitual offenders deserve these consequences, but I would think for R1 ratings across the board with all historical lenders there would be some flexibility if they really value their customers. Heidi basically said it herself, customer feedback is not important to retain customers as nothing I do will help whatsoever. In my professional history customer feedback is welcome, maybe that's why my primary financial institution (wife's employer)has been rated number 1 in customer satisfaction several years running offering the same services.

Last, instead of slamming someone you do not know, read and get your facts straight and you will find I openly admitted all of your accusations. I only hope you never have a life event that puts you in a position to make such a costly mistake. Best wishes to you!

You changed a fact from your original post to your rant posted later. The fact of the matter is that you were late on a payment. You admitted this in the original post. In your last rant you claim to always have been on time. Which is it? Being late once means that there is no more "always".

Now read your terms of use with the credit card. They have done what they have printed in those terms. When people do not make their payments in a timely fashion it costs the credit issuer money, it is only right that they be compensated for it. How much is for another debate.

Additionally, just because someome does not agree with you does not make it slander. The fact of the matter is that you got yourself in this situation - stop blaming others for it.

All divisions under Citigroup should act with the same professionalism. So once again this rebuttal is a another attach on my character. I assume due to the tone that Hiedi seems to take this personal when it is only business ethics.

Also, if you look at my account my card has not been used in some time. Not to mention, my payments have always been above the minimum due and on time at that. Last, if you read the information carefully and check your systems (which should all be integrated) you will see I fulfilled my obligations. In May Citicard (or Citibank stated on my card)will be paid in full and rest assured, I will never do business with this company again!

Be advised that I will copy this report and send it to the CEO of Citigroup. Corporate integrity and respect for the individual should be and is stated in Citigroups Core Values applicable to all divisions, but not enforced. I do understand the agreement, but this email is a direct attack and slander!

First off, it may help your situation if you know who exactly you're angry at. Citicards is actually who you're dealing with, not Citibank, they are different divisions. Thus, making a complaint to Citibank regarding a Citicard issue will not help you whatsoever.

Secondly, you can raise all the awareness you want; File a lawsuit, inform the BBB, send in written disputes, the fact of the matter is you signed a legal binding contract. Whether you like it or not, when you default on a credit card (pay late) your interest rate will go up, almost always to 31.49%. Sure, it's high, but that's the price you pay when you buy items you can't afford and have to rely on a company to loan you the money. It may seem unfair, but unfortunately that's what you agreed to.

After filing my report on 3/27, Citigroup continued to harass me while at work making nasty allegations and threatening to apply another $39 late fee. Well, that is chump change considering the 31.49% interest rate.

So, to support consumer awareness, I continue to contact the Senate and the Citigroup Board of Directors. I also intend to continue pursuing avenues that advise others of this fraudulent activity not to mention degrading behavior.

This is a call to all consumers to boycott Citibank and Citigroup subsidiaries due to multiple reports of unwarranted behaviors. We as Americans should fight for our rights regarding fair lending practices in this every so weak economic situation.